Succession planning can be compared to a game of chess: It is not enough just to plan the next move. It is much more important to already have the next three, four or five moves in mind. But how useful is long-term planning in the modern working world? In this Specialist article, we look at this - in our opinion - crucial factor for the long-term success of your company.
Is succession planning still up to date?
The integration of effective succession planning is crucial in Talent Management. In a time of rapid change and increasing individualisation, succession planning is becoming ever more important. It not only serves to minimise risks, but also makes a significant contribution to employee commitment and development.
Historically, succession planning was primarily understood to mean safeguarding the company's activities in the event of employees leaving. Keywords such as risk minimisation, stability and continuous growth were the key objectives. The focus was usually on the "executive floor" and clearly defined key positions.
However, changing framework conditions such as increasing individualisation have further developed the objectives of succession planning. The focus has shifted to employee development. Talent development programmes, career paths and promotion plans have been introduced to offer you and your colleagues long-term prospects and development opportunities. But how attractive are such approaches in an era characterised by Digitization and transformation? Studies show that succession planning is often a low priority in companies: 56% of all companies surveyed had no succession planning, 21% had formal succession planning and around 24% had informal succession planning (2021 survey, 580 respondents from HR).
Especially in uncertain times of constant change, such as the ubiquitous job hopping, where a good third of employees change jobs after a year at the latest, the importance of succession planning increases. In addition, according to a global study by Oracle, 85% of employees are dissatisfied with the career support provided by their company. The same study shows that 43% of employees would be willing to give up part of their salary to gain better access to development opportunities.
It is therefore essential for your company to strengthen both planning security and employee commitment. This requires new, modern approaches.
What does modern succession planning look like?
As mentioned in the first Specialist articles in this series, we are at an exciting turning point that will also point the way forward for succession planning. The following employee needs in particular must be given greater consideration:
- Co-determination: As an employee, you want more co-determination, including in succession planning. It has been scientifically proven that intrinsic motivation promotes satisfaction - and satisfied employees stay longer in the organisation. It is therefore important to find ways to involve you more in the succession planning process to ensure long-term satisfaction.
- Individuality & flexibilisation : The modern working world allows you to decide freely where and when you work. This trend should also be taken into account in succession planning in order to better cater to individual needs. Flexible working models such as job sharing or geographical independence offer valuable starting points here.
- More transparency: Decisions should no longer be made in secret, but should be multidirectional. To identify potential successors, it is worth taking a broader view and involving employees as well as managers. A visualised representation can be very helpful and can be created at the touch of a button with today's digital tools.
- Strengthening the Employee Experience: The new generation is increasingly demanding positive and meaningful work experiences. Digital solutions can help by making the succession planning process accessible from anywhere. Learning opportunities that are required for your further development steps can be easily provided in this way.
Concrete recommendations for action
In order to establish a modern succession planning process and meet the changing requirements, cultural and technological adjustments are necessary. Here are some tips on how this can be implemented in practice:
- Participative process: address the need for greater participation. You can achieve this through transparent communication. Talk openly with your employees about development opportunities and gain their commitment at the same time. Agree on the next concrete steps together without dictating requirements. Instead, motivate your employees to define these steps themselves. A participative process with open communication helps to intercept different perceptions at an early stage (e.g: You see a person in a certain new role, but they have no interest in a change - or vice versa). Give your employees the feeling that they have a say in the process. Be aware, however, that such conversations can raise expectations. Prepare them carefully and do not make promises that cannot be kept.
- Openness to freedom and flexibility: In order to meet the demands of today's generation, it is important to move away from rigid ways of thinking and processes. More openness to a flexible division of key positions can be helpful. Why shouldn't a key position be continued in a job-sharing model just because it has always been held by one person? Of course, the administrative processes must be in place for such cases. But thanks to HR Digitization, there are now numerous tools available that support such models. Trends such as geographical or time flexibility should also no longer be an exclusion criterion when making succession decisions.
- Create a digital platform: Optimise the Employee Experience with digital solutions that create more transparency for you, your employees and managers. Expand the succession planning population and enable your employees to become part of their own career development and the development of your organisation. A recommended tool that we use ourselves at HR Campus is SAP SuccessFactors Succession & Development .
Summary & key messages
Succession planning may not always be at the top of your list of priorities, but it offers enormous potential to drive organisational development - especially in uncertain times. A key factor in modern succession planning is the opportunity for your employees to participate. Listen to them and shape the future together. Promote openness in your organisation for more flexibility and individuality to strengthen the commitment of your employees. Digital solutions can help to minimise administrative work and provide targeted support for the succession planning process.
Our series of specialist articles on Talent Management has shed light on key areas such as Recruitment, Onboarding, Learning & Development, Performance Management, Compensation & Benefits and Succession Management. To summarise, it shows that a holistic approach is necessary. Successful Talent Management means not only attracting talent, but also retaining and developing it on an ongoing basis. Modern methods such as flexible processes, individual development, transparent remuneration and strategic succession planning are crucial to remaining successful in today's dynamic working environment.
To the other specialist articles in the series
Author
Nathalie Niederhauser
Consulting Operations
Nathalie has a flair for HR development thanks to her many years of experience in the field of HR digitisation. Taking psychological aspects into account, she helps companies to develop customised HR strategies to adequately address the individual needs of their employees. Her aim is to support companies in empowering their employees and promoting digital transformation in HR.